Kalshi Is Now Worth $40 Billion. The New York Exchange's Next Bet Is Bigger Than Prediction Markets

NEW YORK — Kalshi, the New York-based exchange that lets people trade on the outcomes of real-world events, has raised $1 billion in a Series G round at a $40 billion post-money valuation, the company announced Thursday. Wellington and Sequoia co-led the round.

The other investors named by Kalshi are Baillie Gifford, Stripes, Andreessen Horowitz, Coatue, Layer Global, Morgan Stanley Investment Management, Sequoia Global Equities, CapitalG, Hudson River Trading and Balyasny Asset Management. Reuters reported, citing a source, that Tiger Global Management and Dragoneer Investment Group also took part. Kalshi did not include them in its list.

A Valuation That Nearly Doubled in Five Months

The speed of the climb is the headline. Kalshi was valued at $22 billion after a $1 billion round in May, CNBC reported, and at $5 billion in October 2025. Reuters put the jump since May at nearly 82%. According to AlleyWatch, the company, founded in 2018 by Tarek Mansour and Luana Lopes Lara, has now raised a total of $3.9 billion in reported equity funding.

Kalshi offered these numbers about its business. They come from the company and have not been audited:

• More than $1 billion in non-sports annualized revenue. Kalshi did not disclose total revenue or how much comes from sports.
• Annualized trading volume above $1 trillion across the exchange.
• More than 30 million accounts opened, and more than 75% of prediction market trading volume.
• Perpetual futures, launched a few months ago, at $83 billion in trading volume and more than 500,000 traders.
• About 500 institutional entities active in September. Not counting market makers, those entities made up about 25% of trading volume.

Where the Money Is Going

Kalshi says prediction markets were “our starting point” and that it wants to build “the next-generation financial exchange.” The company says it will use the new capital to:

• Launch new products, including indices, single-stock perpetual futures and markets on the price of computing power. It cites a recent partnership with S&P to build indices based on prediction markets.
• Invest in institutional sales and products for hedge funds, proprietary trading firms and financial institutions.
• Expand internationally, with a focus on Latin America and Europe.

CNBC reported that Kalshi also plans leveraged event contracts. The expansion puts Kalshi in more direct competition with established exchange operators such as CME Group and Intercontinental Exchange, the parent of the New York Stock Exchange, according to Reuters. In a June interview cited by CNBC, Mansour said the company was considering going public, but not before 2027.

The Legal Fight Is Not Over, Including in New York

The funding comes during a hard stretch for Kalshi in court. The day before the announcement, Utah’s attorney general filed criminal charges against KalshiEX LLC, Mansour and Lopes Lara, KSL reported. The charges include a second-degree felony count of pattern of unlawful activity and 12 third-degree felony counts of online gambling promotion tied to sports wagers placed by an undercover state agent. The charges are allegations. iGaming Times reported that Kalshi called them “a crazy overreach.” Two days before the charges, the Commodity Futures Trading Commission sued Utah, arguing that federal law gives it exclusive authority over these markets.

New York has its own case. In October 2025, the State Gaming Commission ordered Kalshi to stop offering sports-related event contracts in the state, and Kalshi sued. In July, U.S. District Judge Analisa Torres in Manhattan denied Kalshi’s request for a preliminary injunction, ruling that New York could keep enforcing its gambling laws while the case continues, Ars Technica reported. Kalshi appealed to the Second Circuit.

Federal appeals courts have split on whether states can regulate sports event contracts, and CNBC noted that the Supreme Court will likely have to settle the question. Kalshi’s announcement focuses on its non-sports business and does not mention the litigation.

What It Means for New York Founders and Businesses

One deal can move the city’s venture totals. A single $1 billion round will weigh heavily on New York’s October funding numbers. When reading monthly totals, founders should remember that a handful of giant late-stage deals can hide what is happening at the seed and Series A level.

Hedging pitches deserve careful reading. Kalshi says a business could use its exchange for “hedging exposure to a policy decision or weather event.” Before any company puts money into event contracts or perpetual futures, it should talk with its accountant and lawyer about the risks, the tax treatment and whether the products are available in New York at all. The state’s position on sports contracts shows that rules can depend on where you are and what you trade.

Talent and partners. Kalshi lists partners including Interactive Brokers, Nasdaq, Stripe, PayPal and Block, and says it is investing in institutional sales and product development. Expect continued hiring competition for engineers, traders and compliance staff in the city’s fintech sector.

The bottom line: investors are valuing Kalshi as an exchange, not a sportsbook. Whether that holds will depend on courts in New York, Utah and elsewhere, and on how fast its newer products grow.

Entrepreneurs Of New York is an independent publication and is not affiliated with Kalshi or its investors. This article is not investment advice.